In this article, we will discuss the 15 best places in Michigan for a couple to live on only social security. You may skip our detailed discussion on retirement security & wealth gaps and see the 5 Best Places in Michigan for a Couple to Live on Only Social Security.
Retirement Security and Wealth Gaps
According to the National Institute on Retirement Security, concerns regarding retirement security are at an all-time high. In fact, in their Retirement Insecurity 2024 report, NIRS revealed that 79% of Americans believe that the nation faces a retirement crisis, in comparison to 67% in 2020. Similarly, 55% of Americans are concerned that they cannot achieve financial security in retirement.
The reason so many Americans are concerned about their retirement is due to their inability to save. A recent survey by Prudential Financial, Inc. (NYSE: PRU) revealed that the median savings for a 55-year-old American was about $47,950. Meanwhile, Prudential Financial, Inc. (NYSE: PRU) recommends that a 55-year-old have savings of $446,565 to be on track for a comfortable retirement.
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Racial Gaps in Retirement Security
Whilst retirement is a concern for all American adults, research suggests that some demographics are at greater risk of retirement insecurity than others. Factors such as age, race, and gender impact both the ability to save and access to retirement plans. In a 2023 report, the Government Accountability Office (GAO) estimated that non-Hispanic, non-Latino Whites aged 51 to 64 had median retirement account balances of $164,361 in 2019 (adjusted in terms of 2022 dollars), compared with $80,349 for all other racial groups.
One reason for retirement disparity between races can be family structure and generational wealth. According to a study at MIT, parental income and family background can allow individuals from wealthy families to save more easily. Family structure also plays a key role in the tendency of individuals to prematurely withdraw funds from their retirement accounts. This in turn leads to a decrease in retirement savings whilst also incurring penalties.
“What we find is a strong effect of your parental income and family background on your own savings. Everything else being the same, if your parents or your spouse is richer, you’re going to save more.”
– Taha Choukhmane, Assistant Professor of Finance, MIT Sloan
Addressing Racial Wealth Gaps
Currently, social security plays a crucial role in addressing racial wealth gaps. According to the Urban Institute, white households in the US have five to seven times the wealth of Black and Hispanic households. However, once social security payments are factored into this equation, the gap drops to two to three times. Despite this, people of color are significantly more likely to be financially insecure in retirement.
In recent years, many researchers have called for a need to address retirement disparity between racial groups through the restructuring of social security and other retirement benefits. Many economists and politicians have proposed using “Baby Bonds” as a way of addressing social insecurity and income disparity among retirees.
In 2023, Connecticut became the first state in the US to create baby bonds by investing $3,200 in an account for any baby whose birth is covered by the state Medicaid program. The accounts will continue to accrue interest until these children turn 18, at which time they will be able to access their funds. However, the state has mandated that withdrawals can only be made from the accounts if the holders pass a financial literacy course.
Our research shows how a lack of financial planning can have dire consequences on retirement prospects. Thus, boosting financial literacy among low-income demographics can enable individuals to make meaningful decisions regarding investments and savings. In addition to Connecticut’s Baby Bond initiative, other attempts to rectify racial wealth gaps have also focused on boosting financial literacy.
Last year, Entergy Corporation (NYSE: ETR) launched its initiative “The Power of Prosperity” which supports students of Historically Black Colleges and Universities (HBCUs). The Power of Prosperity program helps remove barriers to students’ academic success by providing students and their families with free access to financial support and resources. In addition, students will be provided with $100 seeded investment accounts and access to financial literacy education and coaching.
“Entergy is committed to fostering the success of our region’s HBCUs. This partnership with Single Stop and Stackwell will help close the racial wealth gap by connecting scholars with the resources to succeed academically and begin building generational wealth.”
– Deanna Rodriguez, President and CEO, Entergy New Orleans, Entergy Corporation (NYSE: ETR)
Entergy Corporation (NYSE: ETR) is a Fortune 500 integrated energy company that operates primarily in the states of Arkansas, Mississippi, Texas, and Louisiana. Earlier this month, the company released its Q2 earnings in which it generated revenue of $2.95 billion, representing an YoY growth of 3.8%. In contrast, reported earnings fell from $1.84 per share in 2023 to just $0.23 per share in the recent quarter. However, the company managed to achieve adjusted earnings per share of $1.92, exceeding analysts’ expectations by $0.15.
The company revealed that adjustments to earnings were primarily attributed to costs incurred as settlement charges on its pension plan lift-out. The management maintains these costs will reduce its exposure to pension liabilities significantly and would help achieve a gradual increase in its revenue and income. In the three weeks following these results, ETR stock has managed to retain a price of approximately $118 with a market cap of $25.4 billion.
While we acknowledge the potential of ETR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
15 Best Places in Michigan for a Couple to Live on Only Social Security
Methodology
To develop our list of best places in Michigan for a couple to live on only social security, we initially picked out the most recommended places in Michigan for a couple to live on only social security on the internet. We used 10+ sources including our article on 15 Best Places to Retire in Michigan, Movoto, and Stacker to develop a shortlist. Further research was narrowed down to these places only.
Among these best places in Michigan for a couple to live on only social security, we developed a scorecard using metrics such as livability scores, cost of living, and average rent. Livability scores were sourced from Area Vibes while average rent was obtained from Zillow Group, Inc. (NASDAQ: Z). By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in descending order. The top 15 places were chosen as the best places in Michigan for a couple to live on only social security.
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Here are the 15 Best Places in Michigan for a Couple to Live on only Social Security.
15. Grand Haven
Insider Monkey Score: 8.90
Livability Score: 80
Median Rent: $1,400
IM Cost of Living Index: 93.7
Grand Haven is located on the eastern shores of Lake Michigan. It is known for its pristine sand beaches and parks. Apart from being one of the most picturesque retirement destinations in Michigan, it is also quite affordable, making it one of the best places in Michigan for a couple to live on only social security.
14. Ferndale
Insider Monkey Score: 8.91
Livability Score: 89
Median Rent: $1,750
IM Cost of Living Index: 102.5
Ferndale is a suburb of Detroit which is a perfect retirement destination for couples who wish to have access to major healthcare centers whilst being able to enjoy the tranquility of a suburban community.
13. Grosse Pointe Park
Insider Monkey Score: 9.14
Livability Score: 83
Median Rent: $1,500
IM Cost of Living Index: 95.4
Grosse Pointe Park offers a peaceful suburban lifestyle to its residents. It allows residents to have access to beautiful lakeside residences as well as recreation, whilst still being able to savor the benefits of being in a close-knit community.
12. Berkley
Insider Monkey Score: 9.38
Livability Score: 91
Median Rent: $1,850
IM Cost of Living Index: 101.5
Berkley has one of the best livability scores on our list. While its cost of living is higher than the national average, the area is full of exciting attractions such as the Detroit Zoo and the National Shrine of the Little Flower Basilica.
11. Kalamazoo
Insider Monkey Score: 9.73
Livability Score: 76
Median Rent: $1,199
IM Cost of Living Index: 85.4
Kalamazoo is home to 6 colleges, meaning that the streets are bustling with a lively atmosphere. Moreover, there are also opportunities for seniors to engage in academic and intellectual pursuits, along with museums, galleries, and shopping spaces in the city center. Its cost of living and housing costs are both quite affordable, making it one of the best places in Michigan for a couple to live on only social security.
10. Okemos
Insider Monkey Score: 9.73
Livability Score: 84
Median Rent: $2,000
IM Cost of Living Index: 87.3
Home prices in Okemos are higher than in the nearby city of Lansing. In fact, Okemos has the highest median rent out of all the destinations on our list. In return for steep costs, the city offers a dynamic lifestyle. It has a rich local history and plenty of family-friendly recreation, including trails for hiking, camping, and wildlife watching.
9. Southgate
Insider Monkey Score: 10.24
Livability Score: 85
Median Rent: $1,500
IM Cost of Living Index: 91.9
Southgate lies in the suburbs of Detroit. In comparison to suburbs such as Berkley and Bloomfield Hills, Southgate is a much more affordable destination for those who wish to live comfortably on Social Security alone.
8. Lansing
Insider Monkey Score: 10.35
Livability Score: 79
Median Rent: $1,100
IM Cost of Living Index: 87.3
Lansing is the capital of the state of Michigan and has a wealth of attractions for retirees. It is also in close proximity to Michigan State University, owing to which the area has a vibrant and youthful energy.
7. Clawson
Insider Monkey Score: 10.58
Livability Score: 92
Median Rent: $1,349
IM Cost of Living Index: 102.0
Clawson is one of the safest communities to live in Michigan. It has the highest livability score out of all the destinations on our list. Moreover, with a median rent of $1,349, it is one of the best places in Michigan for a couple to live on only social security.
6. Allen Park
Insider Monkey Score: 11.27
Livability Score: 88
Median Rent: $1,200
IM Cost of Living Index: 93.9
Allen Park is located in Wayne County, just 15 miles from the city of Detroit. In comparison to Detroit, Allen Park has a more affordable cost of living and a superior livability score.
5. Holt
Insider Monkey Score: 11.33
Livability Score: 84
Median Rent: $1,150
IM Cost of Living Index: 88.3
Holt is located about 10 miles south of Lansing and is one of the best places in Michigan for a couple to live on only social security. It is home to Valhalla Park where residents can engage in sports such as ice skating and fishing.
4. Farmington
Insider Monkey Score: 11.37
Livability Score: 91
Median Rent: $1,095
IM Cost of Living Index: 99.0
Farmington is located in the suburbs of Detroit and has many attractions such as its historic downtown and the Riley Park Ice Rink. It is also the most affordable destination on our list in terms of rent.
3. Marquette
Insider Monkey Score: 11.77
Livability Score: 90
Median Rent: $1,688
IM Cost of Living Index: 88.0
Marquette has excellent healthcare, a dense suburban vibe, and outdoor locations that offer chances for skiing and trekking. Furthermore, housing costs, although higher than some of the other places on the list, are still relatively affordable, making it one of the best places in Michigan for a couple to live on only social security.
2. Frankenmuth
Insider Monkey Score: 11.78
Livability Score: 85
Median Rent: $1,800
IM Cost of Living Index: 79.2
Frankenmuth is famous for its Bavarian influence and culture. Since Frankenmuth is a popular destination among local tourists, there are plenty of excursions for residents to experience, including riverboat tours, a diverse range of restaurants, and museums.
1. Midland
Insider Monkey Score: 11.90
Livability Score: 84
Median Rent: $1,200
IM Cost of Living Index: 84.4
Midland is primarily renowned for being a hub for emerging technological innovation in Michigan. However, it is also famous for its mid-century modern architecture. In addition, it is home to a wide range of parks, allowing residents to have access to incredible forestry and riverscapes. In addition to a high quality of life, Midland is quite affordable. Its cost of living is over 15% more affordable than the national average, making it the best place in Michigan for a couple to live on only social security.
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Disclosure: None. Disclosure: None. 15 Best Places in Michigan for a Couple to Live on Only Social Security is originally published on Insider Monkey.
